Document dYpoYZ86Lgd9X5zpoL0vYvgxR

LIA2^030 LEAD INDUSTRIES ASSOCIATION, INC. o 292 MADISON AVKNUI NEW YORK* N. V. 1001* TCHrHOHf - AACA COOC III OS MOM o f'jurch lcf SUBJECT. AKNUAL S'JWZt AXD OtJTbuCv IEAP-19&3 : Se-ttrs of tlie utad Industries -wsoclatlon, Inc.: Enclosed is a reprint of the article on lead frcxt the. uinuel review Issue of Engineering ud lUnlng Journal,' February, 196-. Extra copies ire available .* long as our supply lasts Very truly yours. KLltak tn Executive Vice President o Lo g * AA* mtft iL 0 Reprinted from !T" 9am LIA24031 I >t) uu^ wi eipwm 'iw uh ih imiw ii i m i Annual Survey And Outlook LEAD-1963 Rooorf L ZWqfeW Executive YIco President Leed WuSfries AtW. Inc O Titr. a s m's L T<*4C of ffpoMinj the state of the lead industry has been rruJc more pleavrnt. if not actually I i g h I e n e d, by the developments which transpired in 1%'. Not only was the >ear one of the best for (he lead industry in some time, hut the outlook, is it drew to a ckne, was most encouraging. The improvement in the statistical position of lead that look place in 1962 continued through 196 ) anJ resulted, as forecast, in bet ter prices, better consumption and bettei profits. In 196), pig lead producers' inven tories both here and abroad showed further reduction* from the previous year-end, despite somewhat higher production ar.d no significant increase in consumer stocks. Consumption showed a further substantial increase over a year earlier. In fact, (he situa tion was such that no action was takcQ by the International I.rad Zinc Study Group of the UN, which met in Geneva last fall to review the lead situation. Supply, L? S. mine production of lead in 1962 had reached a record low since the turn of the century. Due largely to a prolonged strike at the Missouri mines of St. Joseph Lead Co. The strike, which began in late July, caused a loss of roughly 10.000 tpm of lead production. This strike was settled a| the beginning of April 196); and, as a result, mine production of lead in 1963 was some 20,000 Ions higher than in the earlier year. Sec ondary kad production also ihow'cd an increase of about 20,000 tone. On the other hand, imports dect:.ied about 40,000 tons, balancing the in crease in domestic production. Imports were equal to the government-estab lished quotas and were down, because cf iiTipOili foi vUfvkpiic ffuilt Auitialia and Csnada in 1962 which were out side the quota and resulted from a barter arrangement with those coun tries dating back 10 1961. Therefore, the lead available to C S. industry In 1963 totaled about 1.035.000 tons or about 40.000 tons more than in 1962, when 64,000 font had to be drawn from producers' inventories to supply the demand of 1.11-million tons. However, consum ers' demands rose to about 1,166.000 tons in 1963, an increase of about 5**: and some 0.000 tons or more had to b; taken from producers' stocks. This Waves pig Wad inven tories in the hands of U.S. smelters and refiners at the end of 196J at the low level of about 75,000 tons, or less than four weeks* requirements; and it should he noted that Inventory reductions continued throughout the year even after settlement of the St. Joe strike. Outside (he U S., refined Wad pro duction increased moderately; and in November the European Lead Devel opment Committee estimated Euro pean lead consumption up about 3?l, the same as in the US. However, the long series of monthly reductions of refiners* stocks outside the US. was temporarily reversed at mid year C M4 Sr MrCr.HtU. )#.. W^l 42a4Sl, New ,e,k. N.T. I MSS .UWPIU flu Ml i!WW uyi L.opM[i i; N 1976.01 LIA24032 U. S. Lead Supply and Oemand* M *i Jo -l \*.;trr> Load Price Change* (rv..i* |rr n* N Y ) vicinity of Cbn. Year-end prices were the highest 'ince late 1957. Mu-.f i*>n ... Srf.-.o.l if v j ! < -1 iK 1 i.* Qit,l v impels Orv fni-vi table l'it 3M<1 tMf . .. Other imp*!* (nvii f<<t *t.<rkpitr) Ore frr*\Tf4t>t** Pig* and tur* . 144.1* J5V944 444,949 HI.344 222,4*9 -- r*,* : 4 4V2iJ i t:>i 722,4W 6.6no 34.VW \..v I. 1042.. J." ) ' i,,h 14. I'*.1. 5. tOf.t 1. t<M.1 21, 1*. |06l . . Spt. 16 1'X.l.. r>*t. a. 1`MI. . N'.-v. 20. tonl_____ 2, J06|...................... 1" (SI }U So IM 75 . II IMS . II 5 II 50 . 11 75 .12 no . I 50 00 Consumption, All of the foregoing adds up to a pretty encouraging pic ture of the lead inJuury UxJ.iv. But the most encouraging thing of all lie* in a detailed vtudy of the pattern of IcaJ convumption itself in the t' S. Although lead convumption followed the uma! seasonal pattern, being smallest in the third quarter c! the Total........ 1,975.7*9 1.07.9 WO Chare** n at prim ify mfltcf* and refiner** .... 59.904 61.000 (Jeer.) (Wtr.) Th J ................1,155.794 1.142AOO Fxpnrt*.................... I.rtl 5.0t0 Quarterly U. S. Leed Uie* (%h<n txn) |44J`* | l | li U Tf .... 2*2.794 2<v J .| amt ---- .... 2*1.299 3rd n.. --......... 277.299 4th pi ififT. . . . .. . 594,499 276.70il 270.500 2C.6.70U 29S.7O0 vear and larged in the last quarter. eoQiumpiion m each quarter of 1*46.4 exceeded that tn the corresponding quarter of 1962, just at did the 1962 quarter* compared with 1961. This seems to indicate a bold. Solid advance w ithout signs of any weakness or in dication of any other trend, liven the convumption of lead each month TulivaiUl.V. 1.154,544 l.U7^no Pcfrund: Industrial (nfliump* lion....... ............... 1,144,794 1,100 *> 1,145,799 I.I0V-O0 !< ****** M ft IWwrtx rf C l Mtnrfc in 1964, except August, exceeded the consumption in the corresponding 1962 months. In October l**M, the latest month for which reliable sta lUtimatcd ttcckpfte ahipnvnt* .... . . C(wium<T ami trrenL)/>* amrltrr toeV*...........-- . --43,400 -- 6.ono Unarcxjntrd for .. -- I!,204 -- 7."u0 I\*u!.................. 1.154.504 1 137.500 XlIkUM |L-*T.- <4 W.-U 1' S Ml<>i anj l(M I'M '*Fvur4 World Stock Rgurei* CotnNr>fd L*.S. ar<! Olt-I.'c 1* S, Kr.d of November 1941,. In *h-xt ton274,419 fVeembee 1062., .......... .v h .im VS V November IHJ. ...... . 74,197 rVc-m1<T 1962........... . .. 154 o .u j -w - r.s a . November |*4J.............. 744,591 Pcceinbef r*62................ 154. no XXiritt* Hu m* at %*<ut $rWik VO.w>4* *Kt*l' .*4. L/*4 fcrtlnosa J'iUvt.* h L S **J U. S. Lead Consumption* AntmunitwHi.............. . IUmmu c * ................... ltf** ,in.| Ixoorr. .. (\d-V ......... . CJkina Wad.............. Caotin.-*.......... ('< ttljwiblf tut-* .. F*l............................ 1'ipr. tr P* (l l-'tvl* SSort ......................... . S.4.W..................... Trftrf ........................ I s} iitrt.tl ............. S ' * i,* b Utrrirt . K <t triif 4r litharf^. Whirr Vjd................. Tthrr piementt .... A.-i kmck . _____ . VmirjJ* . Vnr^.dine................... Calvani/inf............. Wf icht* and Killavi Cm ............. |H1`* 59,999 21.509 22.099 59.099 99.009 9.909 14.009 4.999 20.909 59.909 7J.044 2.994 26.909 459.909 79.909 19.509 10.59# 109.999 .5.909 5.199 1.409 11.509 17.909 PK.i 47 W> 16.Sim 20.600 56.700 7-`.*i 7.4rfc 12/vni .5.700 1*500 25.500 6A/tflO 1.400 26..SUO 419.UOO 76..5UO tl 100 J5 U*\ |6 *0**0 2.700 S.utn 1.100 |0 !-. 17.7`to 1.145,799 1.105/010 $r4 r *. fc*r* t* Vwi EMWaM tistics are available, lead consump tion of over 106.000 ions was the highest for anv month since October 1956. . Another reassuring factor U the way lead consumption is being maio- umcvl or increased in each applica tion. Only one lead classification show* any significant decline, prac tically all other* showing increased u-age, some of them quite substan tial. And the one showing a measur able decline, red lead anJ litharge, is misleading and readily explained. Since quotas on pig lead imports were established in 1955, more and more finished or wmi-fini'hcd lead products have been entering this coun try from ahmad outside the quota. 1 his is particularly true of lead oxides from Mexico since the quota is by passed and the Mexican export la* on pig lead is avoided. These im ports of red lead and litharge from Mexico have increased from about 7X00 tons in 1958 to nearly 16.000 tom in 1962, and a 1963 estimate of oser 22,000 tons based on nine months' actual imports. The real amount of red lead and litharge used in the U. S. is the sum of domestical but by the end ot November returned a pod-war low of 9*51 a lb in Feb the downward trend and ended 1963 ruary 1962. On Not. 2, 1962. with 4bout 10,000 tom lower than at the consumption moving ahead and sup ly produced oxides and imports. Thus the drop in lead used to make oxides in this country this year Is compen beginning of the year* and some 100,000 ton* lower thin a year he* fore. The net mult is that available statistics covering mod of the Tree World place the decline in dock* dur plies strike-limited, the price advanced to I (If and on Jan. (4, 1963, to 10* W. Then, starting on June 5, 196.1. a series of W f increases brought the price up to 12f on Oct 8. On Nov. sated for by the increase in imports and total lead oxide consumption H more of the order of 90.000 tons than the 70.000 tons shown in the table of lead consumption. ing I9M both here and abroad at alvut 90.000 ions and in the last two sears at nearly 250.000 tons. 20, it moved to I21W. where it re mained for the balance of the year. (On Jan. 2. 1964, the price registered another ` jf increase going to l.lf) This also applies, but in lesser de gree. to a number of other lead class ifications such as cable, white lead. \hcct lead, solder and others. The Price*. AH these positive factors In Meanwhile, the LME price for lead total of lead products uved in the the statistical picture added up to a more or 1c m moved in the same way. t'. S . then, is higher than lead con* series of increases in the New York opening the year at around 54 to sumption given in our table by the price for pig lead which had reached 55 per ton and closing il in the sum of all these imports, or perhaps ( '' WMypiwus'1 'WSff jaw*-*; LIA24033 n.nno to 45.r>oo tom lion of other sheathe* for lead ha* lar, antisibralioo pads for building Most of the red of the lead con gone about as far as it can safely go. foundation* and machinerv, and Wad sumption table should nuke faiilv and that the future may find lead for stHind-proofing probably all con p\.i jot reading for those interested Cable sheath growing at a normal tributed to the increased u*< of sheet 5 d in the JeaJ inJusirv. since consump rale to keep pace wiih the country** lead, although to varsing degree*. tion increased wnne 5' in 19M on grow th. Now pigment*, particularly for metal lop of An i^crea** of H'"' in 1962. The \crv substantial increase* in primers, are adding to lead consump In l`>62, storage batteries had c*tah the use of lead for bearings, calking tion smsC ihev often replace other lished new all time revorJ* both for lead and wider can only be explained than lead pigmentv Research on or- lead consumed (420.0O0 tons) and in replacement batteries shipped (Vl6million). In 1`tM. both these record* cre again shattered with lead con* sumption estimated at 410.MX} tom by the general high Ic'd of business and building activity and the diffi culty of finding any aJcquaic substi tutes SoUer. for example, ha* had to meet sescre competition from other gann-lcad compounds which has* possible applications in many differ ent fielJs show great promise for the future. It is not possible in a short space and replacement batteries up about joining method* tuch a* adhesives, to touch on all the development* that another I million. Contributing factor* welding and brazing. Yet the great contribute to the bright future out were probably severe winter*, high flexibility of soldering and the many look for lead Ihe substantial sum* new car production and a trend to forms, composition* and method* of money w hich the lead industry hat bigger car* with bigger batterie*. Also available base .maintained soldering devoted in recent year* to market batteries for miscellaneous industrial a* one of the most useful method* and product development arc paying application* such a* lift truck* and of joining and hase kept the use of off No better evidence could be found personnel carrier* appear to be prow- solder increasing over the year* on a than that the industry will spend more inf consumer* of lead. per capita basis. Tor example, auto in this direction in 1964 than ever The second biggest uv of lead, a* mobile bodv solder or filler metal ha* before. an anti-knock compound In gasoline. been threatened by plastics for sear*, Some new application highlight*: rebounJed from the somewhat lower but nothing ha* Keen able tc replace A new New York City Health DcpC usage of recent year* and closed in it on automobile production line* be builJmg win be erected on lead-a> on the tccord 192.000 tons Used in cause of it* workability. aifhercnce hestevs pad* to protect against vibra |y,<r. Among probable reavms arc the and speed of solidification. tion from heavy street .raffic for the trend to bigger car* and the fact that The growth in the use of lead for first time, instead of vibration from deterrent* to growth in recent yean ammunition has been quite consistent railroad* and subway*. A Toronto hase run their course. These were and results largely from greater in manufacturer i* marketing a remov new cracking plant* producing higher terest in sport shooting. Both total able wall for use in dividing Hold octane ba*e stock biuh a few yean tonnage and per capita use have in and motel meeting rooms into smaller ago end now operating at capacity, creased even though less and less land rooms, using a lead lining to improve ) O new foreign plant* which Ux'k some i* available each year on which its sounj attenuation characteristic*. of the export market from domestic sportsmen can shixff. A good word Fspcrimcnta] quantities of certain producers and jet aircraft which do should he sjiJ for the Sporfsnten** new- organo-lcaJ compounds are be not use high octane fuel. In each Service Center and the National ing made available lo industry for month in 19*1 a larger amount of Shooting Sports I'oundation for the application testing. New high-speed lead was used per gallon of both reg good wmk they are doing in seeing continuous lerne coating line* at ular and premium gasoline thin in that more opportunities are provided plants iff two IcaJ.ng manufacturer* the corresponding month of the pre- fi*r sports shooting through encour will increase industry capacity for sious sear. The outlook for the fu agement of the establishment of more this product about a thifj. A lead- ture can reasonably be expected to be public and private sports center* for loaded sins I curtJM Ha* been used less spectacular hut steady growth of sleet, trap and rifle shooting and in back of the staec at New York** thi* use. more game preserve*. new Philharmonic Hall lo improve the The small increase in lead used lor The use of lead for collapsible acoustics, and similar material, al eable sheathing H perhapt esetl more tubes has shown substantial expansion ready used for sound-proofing in }ct significant than v'me of the larger in recent sear*, largely due to the aircraft and hclWopters, has been ap increase* in other product* be popularity of fluoridi/ed toothpaste plied successfully to ihe latest hydro* cause the trend for many year* ha* which can onlv be satisfactorily pack foil boat design. A completely new been downward. Thi* downward trend aged in lead tube*. design of Wad roof was developed at first was rapid but had slowed down New detriment* arc also beginning by Massachusetts Institute of Tech considerably in the fast few year*. to contribute to the Improved lead nology engineer* to correct a serious Reversal of the trend, even by a small picture. Waterproofing *f architec deficiency in the original roof of the amount, may indicate that subffltu- tural pool* and planters, now so popu M.I.T. auditorium. end ImMItUaiL )a